Business Description: Engaged in the acquisition, exploration, exploitation, development and production of onshore oil and natural gas production in Texas. Operations are located in South Texas, including the unconventional Eagle Ford Shale, and conventional Texas Gulf Coast regions. The Company also has a leasehold interest in Montana (Bakken).
Challenge: Owner and management team desired to execute a management buyout to provide for owner’s succession plan and allow management to create equity value for themselves. Further, the management team needed outside capital to consummate the transaction as well as pursue oil and gas development opportunities.
Solution: Wilcox Swartzwelder & Co. was engaged to (1) assist in structuring the buyout transaction for which WS&Co proposed a formula based “buy-in” mechanism dependent upon the future value created by management and (2) recapitalize the Company via third party capital for which WS&Co solicited senior and junior lenders in order to obtain a credit facility.
Transaction Demonstrates: Ability for Wilcox Swartzwelder & Co. to deliver a creative solution and successfully raise institutional capital. The transaction is another example of its experience working with oil and gas production companies.
Wilcox Swartzwelder & Co. provides energy investment banking in Corpus Christi, Texas..
See press release.